From the Guardian
1. Italy is the eighth largest economy in the world and the fourth largest in Europe.
2. The country is label-queen heaven – Ferrari, Prada, Armani etc – and a major player in utilities, telecoms and banking...Italy's debts now top $2.2tn, or 120% of gross domestic product.
3. The debt matters because Italy is one of the world's largest markets for government bonds.
4. Higher bond rates should, in theory, make Italy more attractive to investors.... Credit rating agencies have already cut Italy's credit scores.
5. The speed at which government bond crises can escalate is startling:
6. ...Berlusconi's sketchy reforms failed to please anyone
7. "At this point, Italy may be beyond the point of no return," Barclays Capital said in a gloomy report this week. "While reform may be necessary, we doubt that Italian economic reforms alone will be sufficient to rehabilitate the Italian credit...
8. Analysts Capital Economics calculate that if Italy's cost of borrowing continues to soar.... the bill could end up being closer to €700bn.
9. The EFSF doesn't have unlimited cash and a multi-year financing programme for Italy would seriously deplete funds.
10. US officials keep saying that US banks have little "direct" exposure to Italy. But US institutions have been snapping up credit default swaps (CDSs), insurance against credit losses. The value of guarantees provided by US lenders on government, bank and corporate debt in troubled eurozone countries rose by $80.7bn to $518bn in the first half of this year, according to the Bank of International Settlements. One, admittedly small, firm – MF Global – has already gone belly-up in the US thanks to indirect bets on Europe. If Italy goes down in a disorderly default, it will make the Lehman Brothers collapse feel like a Roman holiday.
And I will add the 11th: The Bancor, a new reserve currency. You can read the details here:
Bancor: A One Currency World On the IMF Table
I believe we are moving to an International Reserve Currency: Bancor
Are we prepared for paying higher prices for just about everything?
I have faith in the American people. We will create communities to get through the tougher economic times if the IMF, under pressure, drops the $US in favor of the Bancor.
Btw, the Bancor is needed to provide liquidity in the SDRs. You can read about SDRs here:
Is this IMF'd Or What? Int'l Monetary Fund Losers and Winners.
CONCLUSION:
There are a lot of hints that powerful people are carefully considering our fates which are directly attached to monetary/commodity policies.
I hope they do so with consideration for all the people on the planet. To do otherwise, will invite more wrath from those who might be harmed by the way The Masters of the Universe decide to play their Monopoly Board Game. Will they collectively protect the US Dollar?
Dare we dream?